Congressman Ryan’s Budget Is a Big Step in the Right Direction

The Chairman of the House Budget Committee, Congressman Paul Ryan of Wisconsin, will be unveiling his FY2012 budget tomorrow. Not all the details are public information, but what we do know is very encouraging.

Ryan’s plan is a broad reform package, including limits on so-called discretionary spending, limits on excessive pay for federal bureaucrats, and steep reductions in corporate welfare.

But the two most exciting parts are entitlement reform and tax reform. Ryan’s proposals would simultaneously address the long-run threat of bloated government and put in place tax policies that will boost growth and improve competitiveness.

1. The long-run fiscal threat to America is entitlement spending. Ryan’s plan will address this crisis by block-granting Medicaid to the states (repeating the success of the welfare reform legislation of the 1990s) and transforming Medicare for future retirees into a “premium-support” plan (similar to what was proposed as part of the bipartisan Domenici-Rivlin Debt Reduction Task Force).

2. America’s tax system is a complicated disgrace that manages to both undermine growth and promote corruption. The answer is a simple and fair flat tax, and Ryan’s plan will take an important step in that direction with lower tax rates, less double taxation of saving and investment, and fewer distorting loopholes.

[…] 7, 2011 by Dan Mitchell Just days after the introduction of a very good plan by the Chairman of the House Budget Committee, leaders from the Republican Study Committee in the House of Representatives have introduced an […]

[…] But rather than cementing in place bigger government, as proposed by Simpson and Bowles, Ryan’s budget slowly shrinks the fiscal burden of government. As such, it is on the “Liberty” side of the […]

[…] But rather than cementing in place bigger government, as proposed by Simpson and Bowles, Ryan’s budget slowly shrinks the fiscal burden of government. As such, it is on the “Liberty” side of the […]

[…] But rather than cementing in place bigger government, as proposed by Simpson and Bowles, Ryan’s budget slowly shrinks the fiscal burden of government. As such, it is on the “Liberty” side of the […]

[…] But rather than cementing in place bigger government, as proposed by Simpson and Bowles, Ryan’s budget slowly shrinks the fiscal burden of government. As such, it is on the “Liberty” side of the […]

[…] Congressman Paul Ryan has introduced a budget plan to address America’s fiscal crisis, but Senator Reid and President Obama have summarily rejected his proposal, so it appears the United States will continue to drift in the wrong direction. […]

[…] Congressman Paul Ryan has introduced a budget plan to address America’s fiscal crisis, but Senator Reid and President Obama have summarily rejected his proposal, so it appears the United States will continue to drift in the wrong direction. […]

[…] Congressman Paul Ryan has introduced a budget plan to address America’s fiscal crisis, but Senator Reid and President Obama have summarily rejected his proposal, so it appears the United States will continue to drift in the wrong direction. […]

[…] Congressman Paul Ryan has introduced a budget plan to address America’s fiscal crisis, but Senator Reid and President Obama have summarily rejected his proposal, so it appears the United States will continue to drift in the wrong direction. […]

[…] Congressman Paul Ryan has introduced a budget plan to address America’s fiscal crisis, but Senator Reid and President Obama have summarily rejected his proposal, so it appears the United States will continue to drift in the wrong direction. […]

[…] will ease up the pressure to restrain government spending. There are several budget plans, such as Congressman Ryan’s proposal and the House Study Committee plan, that would significantly improve America’s fiscal […]

[…] will ease up the pressure to restrain government spending. There are several budget plans, such as Congressman Ryan’s proposal and the House Study Committee plan, that would significantly improve America’s fiscal […]

[…] topic is very hot right now, in part because Medicare reform is included in the bold budget approved by House Republicans, but also because Newt Gingrich inexplicably has decided to echo White House talking points by […]

[…] topic is very hot right now, in part because Medicare reform is included in the bold budget approved by House Republicans, but also because Newt Gingrich inexplicably has decided to echo White House talking points by […]

[…] topic is very hot right now, in part because Medicare reform is included in the bold budget approved by House Republicans, but also because Newt Gingrich inexplicably has decided to echo White House talking points by […]

[…] topic is very hot right now, in part because Medicare reform is included in the budget approved by House Republicans, but also because Newt Gingrich inexplicably has decided to echo White House talking points by […]

[…] but that doesn’t mean America’s fiscal problems will be solved. Something like the Ryan budget would be a real step in the right direction. But that’s not what we can expect, even in a best-case […]

[…] In part, he is responsible because the downgrade from Standard & Poor happened on his watch. But the real reason he earned that label is that he doubled down on the reckless policies of his predecessors and demagogued against lawmakers such as Cong. Paul Ryan who actually have tried to solve the problem. […]

[…] doubled down on the reckless policies of his predecessors and demagogued against lawmakers such as Cong. Paul Ryan who actually have tried to solve the problem.” The question isn’t so much, “Who should we blame,” as much as it is, […]

[…] Medicaid reform is critical to save the nation from Greek-style fiscal collapse, especially if it is part of a comprehensive modernization of entitlement programs, and I was very impressed that the House of Representatives actually adopted a version of this reform last year as part of the Ryan budget. […]